The Survive and Thrive Boomer Guide

AT&T to pay $60 million to settle FTC charges it ‘throttled’ customers with ‘unlimited’ data plans

Photo: Luismt94

AT&T will pay $60 million to settle a Federal Trade Commission lawsuit over allegations that the wireless provider misled millions of its smartphone customers by charging them for “unlimited” data plans while reducing their data speeds.

In a lawsuit filed in 2014, the FTC alleged that AT&T failed to tell its unlimited data plan customers that, if they reach a certain amount of data use in a billing cycle, AT&T would reduce – or “throttle” – their data speeds. As a result, many mobile phone applications, such as web browsing and video streaming, became difficult or nearly impossible to use.

“AT&T promised unlimited data – without qualification – and failed to deliver on that promise,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “While it seems obvious, it bears repeating that Internet providers must tell people about any restrictions on the speed or amount of data promised.”

CFPB, state file lawsuit against companies offering high-interest credit offers

The Consumer Financial Protection Bureau or CFPB and the South Carolina Department of Consumer Affairs filed a lawsuit Tuesday in federal court against Katharine Snyder, Performance Arbitrage Company Inc., and Life Funding Options Inc. The companies, owned and operated by Snyder, brokered contracts offering high-interest credit to veterans, many of whom are disabled, and to other consumers.

The CFPB alleges that the companies and their owner violated the Consumer Financial Protection Act’s prohibition against deceptive practices.

The CFPB and South Carolina allege that Snyder and her companies misrepresented to consumers that the contracts the companies broker are valid and enforceable when the contracts are void under federal and state law; misrepresented to consumers that the product is a sale of payments and not a high-interest credit offer; and failed to inform consumers of the products’ interest rates.

Are baby boomers responsible?

As we enter into fall before winter’s blasts, baby boomers are looking at personal and company responsibility. With climate change, corporate wrongdoing, and social media privacy mistakes, baby boomer bloggers are writing about responsibility.

Articles include:

• Whether we’re headed in the same direction as the dust bowl of the Great Depression, except on a larger scale, due to climate change.
• The charges by a federal agency that Match.com used fake love interest ads to trick consumers into buying subscriptions and made it difficult for them to cancel.
• Whether Facebook has become too controlling in determining what we see on the site.
• Sources for learning, including online courses.

Jennifer Koshak of Unfold and Begin writes about these articles on the Best of Boomer Blogs #616. Click here to get the links to the article. And be sure to chime in with your thoughts. Baby boomer bloggers enjoy discussions with readers.

Copyright 2019, Rita R. Robison, Consumer and Personal Finance Journalist

Corporations keep breaking the law due to declining federal prosecutions

Corporations keep breaking the law, and the U.S. Department of Justice keeps refusing to prosecute them, a Public Citizen report finds. The DOJ’s continued refusal to bring criminal prosecutions against big banks, big pharma, and other big businesses that violate the law has led to a failure to deter repeat offenders, according to the report.

Instead of prosecuting corporations, the DOJ, starting in the early 2000s, has increasingly relied on agreements that prosecutors and corporate defense attorneys negotiate behind closed doors to keep corporations – usually the largest – out of the criminal justice system.

“If the Justice Department wants to deter corporate crime, it must stop bending over backward to protect corporations and start enforcing the law,” said Rick Claypool, a Public Citizen research director and author of the report. “Our country is facing an unprecedented corporate crime wave. To stop it, we must prosecute corporate criminals.”

Match.com used fake ads that tricked consumers into paying for subscriptions, FTC charges

The Federal Trade Commission is suing online dating service Match Group, the owner of Match.com, Tinder, OKCupid, and other dating sites, alleging that the company used fake love interest ads to trick hundreds of thousands of consumers into buying subscriptions on Match.com.

The FTC also alleges that Match exposed consumers to fraud. In addition, the agency alleges Match offered false promises of “guarantees,” failed to provide services to consumers who weren’t successful in disputes, and made it difficult for users to cancel their subscriptions.

“We believe that Match.com conned people into paying for subscriptions via messages the company knew were from scammers,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “Online dating services obviously shouldn’t be using romance scammers as a way to fatten their bottom line.”

Be aware of scams if you’re recovering from the effects of Hurricane Dorian

When a natural disaster occurs, scammers are right there, adapting their fraudulent techniques to the latest emergency.

If you suffered damage from Hurricane Dorian, or if you’re looking for ways to help those in need, you can get information at ftc.gov/weatheremergencies. It offers ways to spot the scams that often follow disasters.

After a storm like Hurricane Dorian, scammers often target people who need to get their homes cleaned up or repaired, or find a new place to rent, said by Colleen Tressler, consumer education specialist for the Federal Trade Commission. Scammers may pose as a government official, asking for financial information or money to apply for aid that you can request on your own for free. They often demand that you pay by gift card, prepaid card, or wiring money. That’s always a scam, Tressler said.

Google-YouTube $170 million settlement for violations of kids’ privacy law too weak, critics say

Google and its subsidiary YouTube agreed to pay a record $170 million Wednesday to settle charges by the Federal Trade Commission and New York Attorney General’s Office that YouTube illegally collected personal information from children without their parents’ consent.

The settlement requires Google and YouTube to pay $136 million to the FTC and $34 million to New York for allegedly violating the Children’s Online Privacy Protection Act Rule. The $136 million penalty is the largest amount the FTC has gotten in a COPPA case since the law was enacted in 1998.

In a lawsuit filed against the companies, the agencies allege that YouTube violated the COPPA Rule by collecting personal information – identifiers that track users across the Internet – from viewers of child-directed channels, without notifying parents and getting their consent. YouTube earned millions of dollars by using the identifiers – cookies – to deliver targeted ads to viewers, according to the lawsuit.

Use caution when donating to victims of Hurricane Dorian

When a natural disaster occurs, scammers appear everywhere quickly to try to get your money.

“The destruction that Hurricane Dorian wreaked across the Bahamas is nothing short of a true humanitarian crisis – entire communities underwater, homes completely destroyed, and lives tragically lost,” said New York Attorney General Letitia James. “We anxiously wait for Dorian to pass through the southeast United States and hope for minimal impact and that communities remain safe.”

James urged people who want to support those who have been impacted to be prudent when assessing what organizations to donate to.

Attorneys general and telecommunications companies join to stop robocalls

Fifty-one attorneys general announced an agreement Thursday with 12 telecommunications providers on a set of principles intended to limit and prevent robocalls. The providers have agreed to incorporate these principles into their business practices.

This agreement comes from the work of a group of attorneys general who in 2018 formed the Robocall Technologies Working Group. The group collaborated with telecommunication providers to make it more difficult for scammers to use robocall technologies to intrude on and defraud consumers.

All 50 states and the District of Columbia have joined this agreement with the following telecommunication companies: AT&T, Bandwidth, CenturyLink, Charter, Comcast, Consolidated, Frontier, Sprint, T-Mobile, U.S. Cellular, Verizon, and Windstream.

Broker in pension scam, who settles with CFPB and Arkansas, unable to pay most of repayment to consumers

The Consumer Financial Protection Bureau or CFPB and the Arkansas Attorney General’s Office filed a proposed settlement Wednesday with a securities broker for allegedly misrepresenting high-interest loans to veterans and other consumers in exchange for future rights to their pensions.

Andrew Gamber and his three companies – Voyager Financial Group, BAIC Inc., and SoBell Corp. – would be banned from the industry if a judge approves the proposed settlement.

The CFPB and the state agency alleged in a lawsuit that Gamber and his companies misrepresented that the contracts were valid when they were actually illegal loans, that the product wasn’t a high-interest loan, and when consumers would receive their funds. They also failed to inform consumers of the interest rate on the loan, according to the lawsuit.